In a recession we are told to cut back, consume less and above all to save as much money as possible.
In addition to the classic saving in a savings account, there are other savings that can also be good alternatives.
Economics professor Micael Dahlen figures out which type of savings is safest.
Shares
If you save in shares, it means that you are investing your money in owning a part in individual companies.
– It can go up if they go up in value, but down if they go down. There is no security at all, says Dahlen.
Funds
Fund saving is the safest way to save, says the economics professor. A fund consists of several shares.
– Funds are like a small basket or portfolio of several shares. It’s a little safer because ups and downs can cancel each other out.
Bonds
Bonds mean that you lend money to someone and receive a fixed interest rate for a fixed period of time.
– These are basically pure loans. A government bond is, for example, when you lend money to the government. It is safe saving, but a little troublesome if the interest rate increases at the same time, which has happened in the past year.
Capital insurance
This means that someone else owns your shares or funds. For example, it could be an insurance company that charges a fee for managing your savings.
– You don’t get as much money, but you are insured for ups and downs, says Dahlen.
According to the economics professor, this type of saving is the safest choice.